Sensex tanks 709 pts; Nifty below 16,300

Key equity indices were trading near the day's low with steep losses in the morning trade, tracking negative global cues. Investors were cautious ahead of the US inflation data expected later today. All the sectoral indices on the NSE were trading in the red. IT, metals and financial services stocks tumbled. The Nifty was trading below the 16,300 level.

At 10:25 IST, the barometer index, the S&P BSE Sensex, was down 709.67 points or 1.28% at 54,610.61. The Nifty 50 index fell 194.30 points or 1.18% at 16,283.80.

In the broader market, the S&P BSE Mid-Cap index lost 0.62% while the S&P BSE Small-Cap index was down by 0.41%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,141 shares rose and 1,799 shares fell. A total of 129 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,512.64 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,624.90 crore in the Indian equity market on 9 June, provisional data showed.

Buzzing Index:

The Nifty IT index fell 2.41% to 29,042.95 snapping its two days gaining streak. The index rose 1.40% in the two trading sessions. IT Stocks declined as investors are concerned if inflation in US has peaked or if the Federal Reserve will need to be even more aggressive to tamp down price increases.

Among the components of the Nifty IT index, Wipro Ltd (down 3.74%), Coforge Ltd (down 3.72%), Mphasis Ltd (down 3.5%), Tech Mahindra Ltd (down 2.82%) and L&T Technology Services Ltd (down 2.54%) were the top losers.

Stocks in Spotlight:

Dr. Reddy's Laboratories fell 0.06% to Rs 4,323.55. The pharma company said that Olema Pharmaceuticals Inc. and Aurigene Discovery Technologies have entered into an exclusive global license agreement to discover and develop novel cancer therapies. The two companies have joined hand to research, develop and commercialize novel small molecule inhibitors of an undisclosed oncology target. Aurigene Discovery Technologies is a clinical stage biotech company committed to bringing novel therapeutics for the treatment of cancer and inflammation and a wholly owned subsidiary of Dr. Reddy's Laboratories.

IIFL Finance jumped 4.54% to Rs 343.95 after a wholly owned arm of Abu Dhabi Investment Authority (ADIA) invested Rs 2,200 crore for a 20% stake in IIFL Home Finance. IIFL Home Finance, a wholly owned subsidiary of IIFL Finance, is engaged in the business of providing home loans, loans against property and construction finance. The company has assets under management of Rs 23,617 crore as of 31 March 2022. It is headquartered in Gurugram with presence across 16 states and 2 union territories with over 200 branches.

Power Finance Corporation fell 0.88% to Rs 107.60. The state-owned Maharatna said its wholly owned subsidiary, PFC Consulting, incorporated a special purpose vehicle (SPV), Fatehgarh IV Transmission, as its wholly owned subsidiary on 8 June 2022. The SPV was set up to develop transmission system for evacuation of power from REZ in Rajasthan (20 gigawatt) under Phase-III-Part-A1.

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